Did Relational Capital Matter During the Financial Crisis?

24 Pages Posted: 20 Dec 2013

See all articles by Anna Bykova

Anna Bykova

National Research University Higher School of Economics

Evgeniia Kuminova

National Research University Higher School of Economics

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Date Written: December 19, 2013

Abstract

This paper aims to contribute to the body of empirical studies that address the importance of investments in companies’ relationships and the way in which they influence value creation in the global economic crisis. We employ linear panel analysis using the Hausman-Taylor model to analyse panel data for companies from the five largest European countries in the period 2004-2011. Different types of exogenous and endogenous links which a company could have in different stages of the crisis are investigated. The findings suggest that there is a statistically significant and positive link between relational capital and a firm’s value. Moreover, we identify several differences in the significance of the inputs during different crisis periods. The study provides both theoretical and practical insights into investments in intangibles for framing strategy decisions with a particular focus on the role of relational capital. This could provide scholars and practitioners with a working basis for understanding connections and the implications of strategizing in the context of a company’s networks.

Keywords: relational capital, economic crisis, value creation, Hausman-Taylor specification

JEL Classification: G32, G34

Suggested Citation

Bykova, Anna A. and Kuminova, Evgeniia, Did Relational Capital Matter During the Financial Crisis? (December 19, 2013). Higher School of Economics Research Paper No. WP BRP 23/FE/2013, Available at SSRN: https://ssrn.com/abstract=2369797 or http://dx.doi.org/10.2139/ssrn.2369797

Anna A. Bykova (Contact Author)

National Research University Higher School of Economics ( email )

Studencheskaya str., 38
Lebedeva str., 28
Perm, Perm 614017
Russia

HOME PAGE: http://www.hse.ru/en/

Evgeniia Kuminova

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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